Location: Lassen County, CA | Metro: Lassen County, CA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $890 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,250 |
| 3 Bedrooms | $1,730 |
| 4 Bedrooms | $2,090 |
| 5 Bedrooms | $2,424 |
| 6 Bedrooms | $2,715 |
| 7 Bedrooms | $2,932 |
| 8 Bedrooms | $3,079 |
U.S. Census Bureau data (2024)
The classification of ZIP code 96123 hinges significantly on the available data points regarding rental market dynamics, income levels, and the absence of certain key metrics such as market rent and median home value. With a focus on yield and stability, let's dissect these elements.
Yield: The Fair Market Rent (FMR) for ZIP 96123 is set at $1,280 for the fiscal year 2026. This figure represents the benchmark against which landlords can measure their rental pricing to ensure compliance with HUD guidelines. However, the lack of market rent and median home value data makes it challenging to fully assess the potential yield of properties in this area. Typically, higher yields are associated with markets where the FMR exceeds average market rents, indicating a strong demand for affordable housing. In this case, without comparative market data, we cannot definitively state the yield potential beyond adherence to the FMR.
Stability: Stability in the rental market is influenced by factors such as the percentage of renters, the days on market (DOM), and average household income. ZIP 96123 has 26.1% of its residents classified as renters, which suggests a moderate level of rental activity. The missing DOM data could imply a stable market if the number of days properties remain unsold is low, but this cannot be confirmed without the actual figure. Household income averages at $41,563, which is a critical indicator for stability. Landlords should note that higher incomes generally correlate with lower default rates on rental payments, suggesting a relatively stable tenant base.
Based on the provided data, ZIP 96123 does not clearly fit into a high-yield/low-stability flip-style market or a steady-cashflow zone. The absence of market rent and median home value data precludes a definitive assessment of yield potential. Meanwhile, the presence of a moderate rental population and average income levels point towards a market that offers reasonable stability, albeit with limited growth potential compared to areas with higher income averages or clearer market rent trends.
To make an informed decision, landlords and small-portfolio investors should seek additional local market data, including current market rents and recent sales figures, to better understand the balance between yield and stability in ZIP 96123.
Data Sources: FMR data from HUD (2027). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.